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tv   Your Money  CNN  July 28, 2013 12:00pm-1:01pm PDT

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president obama's new agenda for the middle class. "your money" starts now. president obama says he is seeking a better bargain for the middle class. a bold economic agenda or another speech for history. i'm christine romans. this is "your money." a secure retirement, invest, this week in knox college, the president laid out what he called the cornerstones of middle class security. >> when the rungs on the ladder of opportunity grow farther and farther apart, it undermines the very essence of america. >> it is not the first time president obama has spoken at knox college. eight years ago in june, 2005, when the president was then a newly elected senator with less gray hair, he delivered the commencement address and laid out his economic vision for the
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country stressing the importance of education for combatting the job threatening forces of globalization and technology. familiar themes, yes but a very, very different time. back then, the unemployment rate was 5%. today, it is 7.6%. gdp was growing at an annual rate of more than 3%. today, it is 1.8%. in 2005, tuition at knox college was $24,960. today, it is more than $38,000. that's a rise of 53%, something you have seen nationwide. the president says this country has cleared away the rubble of the financial crisis. he also says, there is much more to do. the question, will a renewed laser focus on the middle class change the conversation in washington? kevin hasset is a senior fellow at the american enterprise institute. stephanie cutter will be the host of cnn's contract cross fire" when it debuts this fire. she was president obama's deputy campaign manager in 2012 and
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jessica yellin is cnn's chief political correspondence. this is the third economic push or reframing of the issues since his election. a new wall street journal poll shows the majority of americans disapprove of how this president is handling the economy. here is the republican reaction. >> his speech turned out to be all sizzle and no steak, assuming there is in sizzle left after you have reheated this so many times. >> the president is trying to reframe for what? >> he is looking ahead to the debt-spending fights that are going to happen in fall when congress sets out to set next year's budget out an deal with the debt ceiling. he is using his megaphone to try to start that conversation in a different pitch this time, christina, to focus not on the numbers but on the notion. instead of having a conversation that's about the size of the
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deficit and bringing that down, that will be more about things like education, jobs, retirement, safrgs. if the white house has viewed that the president does better when he can focus on those kind of topics the american public can understand and relate to than when it is entirely about the deficit. that's also one of the reasons they think his numbers come down, whenever he is locked in the bale with congress in washington. you see his numbers come down when he goes out to the people, his numbers tend to rebound. i would just throw up a note of caution here which is that look this is a little bit of the same dynamic we have seen before. one person has been out there attacking congress this week. congress is accusing him of being the engine of division. a little bit of role reversal. it is the same old dance we have seen for a lot of years. >> the president calling out republicans for not tangoing. saying you can't just be against something. you have to be for something. democrats are passing around
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bumper stickers like this. republicans accusing the president of not creating jobs is like lucy accusing charlie brown of not kicking the football. republicans are lucy in this scenario. >> this time, i am going to kick that football clear to the moon. >> kevin, the president called for universal pre-k infrastructure investment, lots of other middle class friendly objectives, the deficit has been coming down. so why not? >> right. i think that the interesting thing, it was pure campaign mode. he was blaming republicans for obstructing his new great ideas but promised he was. it is wa a very odd speech. i thought he was kind of like bozzle faulty in faulty towers and man well, the silly, stupid
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waiter is the republican. that is the attitude he had against them. i think the real news is, it is related to the economy improving and the deficit going down. the debt showdown in the fall which might go into the winter is probably going to be a lot different than the other ones because the deficit will be declining as we go into it. what's going to happen is there is going to be a christmas tree bill. the president is posing and getting ready for a christmas tree bill. we have the keystone pipeline and a few of the things he likes. those are going to be the things that get the debt limit lifted. i think that's what the speech was really signaling to me. >> i heard a lot of verbs in there that i think stephanie is going to take issue with, that he was insulting to republicans. he has a lot he wants to accomplish on the economic agenda. he can't do it without congress. a lot of these big goals can't
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happen without bipartisan support. >> let's put all of this in con text. i think that's important. over the course of his first term, and now six months into his second term, i don't think congress has been refusing to work with him because they are insulted by his rhetoric. they are refusing to work, because they think it is a winning strategy. they want to repeal and cut. the purchase of the speech was i think to remind the american people who was fighting for them. the president stands alone in that regard. republicans in congress are fundamentally opposed to working towards middle class equality. that's a problem. that is a hurdle for the president getting this done. that doesn't mean he is going to stop trying. he is going to try until the last day of his presidency. that was the purpose of this speech, to remind everybody, if we want to grow the middle class, if we want a strong
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economy, if we want growth for years to come, we have to take care of these fundamental things that we know work. >> we have another block to talk about this. don't go away. jobs are coming back but they are not the jobs that built the middle class. the first cornerstone of a strong, growing middle class has to be an economy that generates more good jobs and durable, growing industries. >> does the president or anyone really have a way to fix it? all business purchases. so you can capture your receipts, and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork. and more time doing paperwork. ink from chase. so you can.
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we are not there yet. president obama tells us the progress america has made since the administration. he acknowledges more needs to be done. they have added 6.6 million jobs but nearly 9 million jobs were lost overall during the recession. the jobs that are coming back are not, not all of them, the same quality as the jobs that
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were lost. a third of u.s. workers make less than $24,000 a year, a third. the issue of stagnant wages doesn't get all that much attention. one of the things i worry about, no one really knows how to fix it. knowledge college, where the president was speaking, the problem with stagnant wages and losing good-paying jobs started before this financial crisis and we haven't fixed it yet. >> that's true. it used to be when productivity rose, so did wages. last year, wages were the lowest percentage of our annual gross domestic project than they have been on record. look, i think part of the problem is exactly what you say. nobody really knows how to fix this problem. i think this administration would tell you that a big part of the challenge is that health care costs now eat up much greater portion of everybody's wages and so more money goes into the health care pot instead of into your take-home pay. if they can help bring down the cost of health care, that will
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help you get more money in your paycheck in the future. obama care is a big plus in that regard. not everybody is going to agree with that. a lot of people take issue. >> millions of american families, it is their reality and it has this effect across the economy. i feel like we can't be an economy that has all these people that are doing great but then you have this vast middle that doesn't have an outlet or doesn't have a place. that's something that neither party has been able to fix, kevin. >> i disagree we don't know how to do this. if you have a lawn-mowing business, we are chasing all the jobs and machines that could lift in the u.s.
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the president has said he wants to do something about it but they haven't been able to get it done. if you want a middle class agenda, which was not a focus of the president's speech, the way to do it is to try to get people, the machines they need, the tools they need to earn a higher wage. to do that is to have a higher tax reform. >> the focus of the president's speech i will disagree was middle class issues. in both speeches, the president mentioned the local maytag factory that shut down in 2004. knox tracked more than 400 of the workers that lost their jobs, they are making $10,000 less than at maytag. they left gailsburg and went to mexico and then to japan. what should we be doing about the focus of the quality of
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these jobs? >> the president's tax reform plan cuts the manufacturing tax to 25%. for one specific reason, to bring manufacturing jobs back to this country, because those are better-paying jobs. the president's proposal on universal pre-k, that's to create better skilled workers to fill the high-skilled jobs. infrastructure has a lot to do with creating better paying jobs. first, it brings jobs back to this country, because companies know they can shift their goods all over the world if they have good infrastructure here. number two, it creates higher-paying jobs. >> it is such well-worn territory. thank you so much for dropping by. really nice to see you. we will do it very soon. there is a lot to talk about. agreement and some disagreement. despite martin luther king jr.'s incredible achievements, his ability to tackle poverty was cut short by his tragic assassination nearly 50 years
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ago. with so much progress, overwhelming racial inequality in the economy and money is still the norm. our next question, is it fair to expect president obama to do more about it? i like a clean kitchen.
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i don't do any cleaning. i make dirt. ♪ i'm not big enough or strong enough for this. there should be some way to make it easier. [ doorbell rings ] [ morty ] here's a box, babe. open it up. oh my goodness! what is a wetjet? some kind of a mopping device. there's a lot of dirt on here. morty, look at how easy it is. it's almost like dancing. [ both humming ] this is called the swiffer dance.
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we've seen president obama take strong stands for many causes, immigration, gun control and his support of gay marriage, led news we"newsweek" to dub hi first gay president. u.s. is a country where the unemployment rate for african-americans has long been doubled the rate for whites. in 2012, more than white americans, almost 18 times the median net worth of african-americans with just shy of 6,000, just about $6,000. that gap grew significantly in
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the wake of the financial crisis. since president obama took office, he has mostly steered clear of these issues. rarely addressing topics like affirmative action, mass incarceration and racial profiling. that changed following the protests over george zimmerman's ac quit taacquittal in the shoo death of trayvon martin. >> i understand the challenges that exist for african-american boys. the poverty and dysfunction that we see in those communities can be traced to a very difficult history. >> former "new york times" columnist. 93% voted to keep president obama in office. there is this question. the president has steered clear of the color of money until recently. do african-americans, does the black middle class and the black
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elec tore at want more from him on these issues? >> i have had expensive conversations with people. if you talk to african-americans pr privately, you will sense feelings of disappointment but you will very seldom see them expressed publicly. they would like to see the president do more. on the other hand, a lot of blacks are resentful at the way obama has been treated by the republicans, the racial tenor of the criticism of him and that sort of thing. black people are in a push/pull situation. >> you could say the same thing about the lgbt community and then the president delivered for them. you could say the same thing about the people that wanted to close gitmo. he has tried to be a president
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for all americans, not a president for different factions. should he have policies tailored specifically to african-american youth. does he need to many could out and do something? >> even before you get to the policies, you have to address these issues. you have to talk about them. he is obviously the president of all americans. that means if there is a problem with women, a problem with gays, a problem with african-americans, you have to address those problems honestly and vigorously. t too often, when it comes to african-americans, it hasn't really happened. it is not really with this president. this president may have been more reluctant than some other democratic presidents to address issues related to can blas. in obama's case, he feels it is harmful to him politically to address the race issue very
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often at all. that there will be pushback from the white community. a certain percent sanlg wiage w he is there to give everything to the blacks. >> the president did talk about poverty. 35% of blacks live in poverty in this country compared to 13% of whites. is it fair to ask the first black american president to do more for black americans and their money. is it fair to expect more from him on this? >> you know, it is a question of what you mean by to expect more. what i would expect from obama is not more nor less. what i would expect from him is to look at the issues as they are -- as they prevail right now and to address them, to address them forthrightly. i don't think anybody has.
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>> the energy boom was supposed to put money in your wallet. instead, it is blowing out your car's tailpipe. it is escaping out the windows in your home. you have been running the a.c. and you are going to pay for it. i'm going to tell you why next.
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we are producing a lot more oil and natural gas but are you feeling? a thousand more jobs and lower epgy, this summer, driving the car and running the a.c. is getting more expensive. gas prices have surnled. after dropping from the july fourth holiday weekend until monday, gas prices up 17 cents a gallon. electricity prices are also rising. check out the change at the wholesale level in some of the country's biggest trading hubs. in massachusetts, up 101%. in new york state, up 65%. washington, oregon, illinois,
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arizona, california, all with huge gains. the energy administration says it is because of the rise in natural gas. that's used to make electricity. energy producers buy natural gas in bulk years ahead of time. many areas got a big break in the sweltering heat. the national weather service predicts higher than expected temperatures across most of the country over the next three months. you can see where. let's go back to gas. it is not just charngs changes in demand for gas that move natural gas. those cause worries about the supply chain and big banks may also be contributing. banks that own power plants and pipelines and other physical
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commodity businesses pose problems for consumers. >> i also don't think that most retirees realize that their pension or retirement savings are used to pave the way for big banks to be able to control an electric plant or an oil refinery. >> an expert from everything from the wellhead to the gas tank, and chief oil analyst at gas buddy. big banks, tensions in the middle east, demand, cash-strapped americans, refinery problem. is there a simple way to explain why gas prices are rising when we are flushed with oil and gas? >> we are a part of the world. we have the privilege numbers in terms of cheaper crude. there are 1 billion people elsewhere that are moving into the middle class. we are going to see some semblance of world oil prices. relative to the rest of the
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world, better prices for crude and much cheaper for natural gas and a little better of a privileged continent atmosphere. people don't notice it. they are paying what they have paid in the last three years for gasoline. we look at a generation ago and it was $1.50 or lower. >> without all these supplies, it could be worse. >> we will need to remove out haveof the equation that we are not going to go to $5 and $6. >> only if we had a major cataclysmic event like a major mid eastern war. we have plenty of refining and domestic crude. we are producing more crude oil than we have since december of 1990. we are going to go into the '80s in terms of matching production. >> we complain. we might be an entitled continent. we complaint. there was a commenter that said
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prices go up like a rocket and down like a feather. have we peaked? >> i think we have peaked in february. they have peaked unless we get events, a hurricane in the gulf and take whatever the category of the hurricane is and move in some sort of exponential cubit. without that and without egyptian violence breaking out, i think we are pretty close to a top. i think we will see much lower prices in the last 100 days of the year. >> i am so glad to turn my a.c. off. if it isn't put in the gas tank, it is going to be paying my electric bill this summer. >> could be. >> thanks, nice to see you. >> here are the other stories that matter to your money. give me 60 seconds on the clock. it is money time. good news for apple. it sold 31.2 million iphones last quarter. the bad news, profits sank. investors are still waiting for apple's next big thing. a new study finds parents are
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forking over less cash for their kids college. students rely more on scholarships and bunking up with mom and dad. one kid who doesn't need a college fund, kate and william's royal baby boy. estimates for the cost of raising the prince, at $1 million. taco bell won't be selling meals with toys anymore. taco bell is the first national xhan to dump the kiddy menu. say good-bye to mail at your door. they are pushing to includeser boxes instead of door to door delivery. 25% of all web traffic is on google, bigger than facebook, twitter and netflix. netflix could use more traffic. bringing back arrested development helped bring in lots of viewers but not enough to keep investors happy. facebook finally delivers. the company had its best day ever on thursday. it rallied 30% after making big
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inrhodes in roads in mobile advertising. several wall street firms are raising their target price. the housing market. home prices are up more than 12% from a year ago. this is according to s&p okay sh kay shiler. zillo predicts they will rise another 5% over the next year and double digits nationwide. where should you put your money now? before we ask wall street, let's hear from main street. >> if i had cash to burn, i would most likely buy real estate. >> i would probably buy stocks. >> i think the stock market on the whole has always been better. >> i feel like the housing market is going to eventually go up. >> i'm going to buy some stock. >> if it is not under my mattress, it would probably be in real estate. >> if it is not under my mattress. >> there is always somebody
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putting it in the mattress. let's ask the experts, keith, michelle, nice to see you guys. keith, if we talk hot market, look at facebook. now, the targets are getting bumped up. are you buying? >> i definitely wouldn't buy facebook today. if you own facebook, i would take it, sell it and buy a house with it, christine. people should feel comfortable in housing. supply is tight. think about your mortgage payment as a percentage of your income. it is a historical low. prices, as you put it, multiple times, are rising, which is a great time to buy a house. >> lots of data on houses. new home sales were at a five-year high. you look at some of this housing data. do you agree with mortgage rates falling for the second straight read that the read on the
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housing market is still quite bullish? >> i think it is. the fundamentals are very supportive of home prices continuing to rise. we have very low inventory. a lot of pent-up demand coming from household information and also coming from people that were sitting on the sidelines waiting to feel more comfortable about the idea housing is an appreciating asset. i think we are seeing a continued improvement in housing and demand. it could be volatile. it always is volatile. the data is very noisy. we have to be careful. >> do you this i it is a game for the 1%, this real estate game at the moment? when you look at first-time home buyers and they tell the realtors that they can't find the house they want in their price point but they can't find something they can afford probably because of inventory issue you and they are still having trouble getting mortgages? you look at some other of these markets, 57% of the purchases in florida are cash purchases. 80% of purchases in vermont are
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cash purchases. doesn't it seem like it is a game for the masses but people who have money are making money in real estate? >> it still in many ways is a distorted market. we came off of the aboutest housing recession since the great depression. we have had a lot of distressed inventory and extraordinarily low production and construction. i think, yes, in terms of clearing out the distressed inventory and moving the existing property, it has been driven by that higher-end individual. once we start to see new construction pick up, which is more focused towards that entry-level home buyer, then i think we begin to see the resemblance of a more normal housing market. we are not in a normal market. this is the beginning of a turn which ultimately will be towards a more stable market. >> keith, you said earlier, take that facebook stock and buy a house with it. if you asked the question, stocks or real estate, is the answer both? >> yeah, i think it is both. it is all about the duration of your holdings. so i think you had i a lot of
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normal people give you that explicit answer. on stocks, you have to keep buying pullbacks. what the market is doing and facebook is a shining example, the market is saying, hey, look, we like growth even though the rest of the world is trying to scare the hell out of you, fear is for sale, bonds are for sale. you want to sell those. you want to buy stocks on pullbacks and take your gains and buy longer duration assets like a home. affordability in a lot of metrics is where you want it to be. now, you need that type of supply. >> i keep hearing, if you have a house, buy another. that's the best place for anybody to make money these days. michelle, thank you so much. coming up, sex, lies and money. from anthony weiner and wall street. these days, it is hard to find anyone to trust.
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> sex, lies and money, it is hard to find somebody to trust. >> from the political field to the playing field, no one is leveling with the american public these days. >> citizens are more interested in the challenges they face in their lives than anything that i have done embare rasing in my past. anthony weiner's bad behavior didn't end with hess resignation. will it end his political career? weiner went from rising political stars to tabloid staples. they want another shot. from the political field to the playing field, alex rodriguez has admitted to doping in the
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past. now, the highest paid player in all of major league baseball is facing a scandal that threatens to end his career. cheating, it's why ryan braun was suspended without pay for the rest of his season. it's why lance armstrong was stripped of his seven tour de france titles. his response to a suit from the justice department over his form or sponsorship of the postal service, he says they should have known he was doping. more lies alleged on wall street. the government is going after one of wall street's big dogs indicting billionaire steven cohen's hedge fund sac capital charging it with insider trading and fraud. just latest in sex, lies and money. joining me now, cnn's political power couple, margaret hoover and john avalon. we have seen anthony weiner's wife, huma abedin, stand by her man. new york democrats i don't think
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are going to be so loyal. after this week's scandal, weiner fell from the top spot. his favorable rating plunged. a second chance. a third chance? >> this may be too far even for new york voters. when you polled 73 of new york democrats. this is only a democratic primary. he only has to be in the top two. he is in a statistical dead heat for the number two spot. 72% of democrats that are going to vote said huma abedin's testimony made no difference to them at all. third chance may not happen? >> is this what voters -- what do you know that he says is true or false? >> the guy is clearly a narcissist. he lied to his family about something he had already been punished very publicly for. you can take the medical route and say it is an addiction.
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i don't give a dam. you deal with that in your private life not trying to run for mayor of new york. this massive deficit of trust. part of the problem is, people in positions of authority aren't trying to hold themselves to a higher standard anymore. it doesn't seem like they are. people that aspired to be abe lincoln or that idea of noble public service the kennedys tried to embody, we have seen a steady supplied in personal behalf yoib behavior. >> the government is suing lance armstrong claiming he violated his contract with the u.s. postal service. i want you guys to respond to this. lance armstrong's lawyer offers an eye-popping defense to get this case dismissed. i want you to read this quote. the government wanted a winner and all the publicity, exposure and acclaim that goes along with being his sponsor. it got exactly what it bargained
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for. >> this is the dark side of the american dream. that will to win. folks, if they are narcissists, feel like they can cut corners and get that competitive edge and rewarded it. then, the sin becomes getting caught, not the actual cheating. >> this is like a summer of lies. i'm telling you. it is the summer of lies. every newspaper, every blog, is how we have been lied to, who is being cheated who is trying to dodge punishment. in wall street, we are talking about sec charges, and fines for halliburton. we are talk about all kinds of different things. the good news is -- i'm speechless. >> your brain is hurting from all the lying. >> the good news is, they are getting caught and there is moral outrage about it and we are having this conversation. this isn't okay? this isn't how we play. we play fair. we have laws and rules and we are enforcing them because it matters. >> let's be completely honest.
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a lot of campaigns feel they will break laws and pay a fine after the fact. >> the cost of doing business. the comparative fine, $200,000 in the case of halliburton outside the other payments they are going to make for fish and wildlife. it is a rational bet to make. >> the common denominator is winning at all costs and an adulation for share holders or from bosses or viewers or sports, all about the bottom line. >> guess what? nice follows day. consequences will kick in eventually. >> not so much lying. the summer of lying. >> a rare glimpse at modern life, if you call it modern. inside super, secretive north korea. >> these kids, we talked to some of them. they love things that most children love, cartoons, rollerblading but when you ask them what they want to be when they grow up, many of them say they want to be soldiers to
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protect their country. >> our ivan watson with remarkable access to north korea's economy right after this. >> announcer: introducing the redesigned jitterbug plus, our smartest, easiest cell phone yet. >> when i heard about the jitterbug, i went online and ordered one for my mom. now my mom has a cell phone
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[ female announcer ] if you can't afford your medication, astrazeneca may be able to help. around the world, a universal sight of progress. in north korea, the country is dark. the secret, repressive hermit kingdom. it is rare, incredibly rare, to get a glimpse inside this country. a country that has walled itself off from the rest of the world. our ivan watson is there. as northern korea marks the 60th anniversary end of the korean war. they are allowing carefully guided access to the most secretive country on earth. welcome to the flower festival named after the founder of the democratic people's
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republic of korea and his son who ruled this country until his death. these flowers are a big source of pride in this country. we are told nearly every institution in north korea has a greenhouse devoted to growing north korea is very well-known for its lavish patriotic displays and that's taking place in a country that's had a rather rough economic time over the course of the past 20 years. now, in our short very controlled time in pyongyang, we are definitely not seeing any of the signs of the terrible famine of the 1990s which killed hundreds of thousands of north koreans due to starvation. in fact, experts are telling us they're seeing more cars on the roads than before and that people seem to have better clothes, as well. and this is despite the fact that they're strong crippling united nations sanctions against north korea. it's very hard to get economic statistics on this country. the system is very opaque here.
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we rely on figures from the central bank of south korea which says that the economy has, in fact, grown in 2011 and 2012. we also know that a big chunk of north korea's international trade comes through one center, the kasong industrial park. south koreans industrialists use north korean labor. just last april, the north korean government shut down that industrial center because of a crisis in relations with south korea and much of the international community. and that just goes to show that even now economics takes a backseat to politics in north korea. ivan watson, cnn, pyongyang. how do you create a billion-dollar empire without spending a dime on conventional advertising? hint: oprah, beyonce, kim
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kardashian. can you guess the must have item in their close it? guys, i'm talking to you, too.
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kim kardashian wears them and beyonce and jesse tyler ferguson. what am i talking about? span k3x. those celebrity endorsements helped the founder build a
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billion-dollar clothing empire all without spending a dime on conventional advertising and all by selling something you're not going to see. >> simple answer is through word of mouth. every man out there who lives with a woman knows exactly what spanxx are. they suck you in. give you a desired shape. very simple idea but the woman who came up with the idea went from selling fax machines door to door to a billion dollars under ten years. take a listen. ♪ is a va blakely admits she's not your typical ceo. she's never taken a business course or any experience in her field. but she's a grade "a" student coming to not taking no for an answer. >> i got laughed at the whole way. i learned that you had to keep going. >> blakely is the world's youngest self made female billionaire thanks to spanx. tight-fitting shapewear for
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women. . an idea that came to her getting dressed for a party. >> there was a void for undergarments for women. spanx came out and kree yalted a completely invisible, lightweight shaper that became second skin. >> they give you a nice shape. suck you in without being too tight and uncomfortable. >> i'm getting married and needs something to hold in the goods to nobody see anything that only your husband should be seeing. >> she sold 10 million pairs all over the world. without spending a dime on advertising. >> the girlfriend tells you at a cocktail party or at, you know, sitting at a restaurant about a product, you tend to become much more loyal and interested in it, i believe, than if somebody shows you a glossy picture in a magazine. >> especially when that girlfriend is oprah. >> i've given up panties. i wear spanx. that's more information than you all need to know but -- >> one mention from oprah and 20,000 pairs of spanx were sold in less than a day. >> you can imagine it's like
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winning the lottery as an entrepreneur. >> blakely's road to success didn't start out easy. after failing to make the cut for law school, she sold fax machines. >> i always say failure in many cases is life's way of nudging you and letting you know you're off course. if i hadn't failed, spanx would not exist. >> after patenting her idea, she begged factories to start making it. although they were refused, blakely refused to stop trying. >> when i grew up, my dad used to encourage my brother and me to fail so i would come home from school and sit at the dinner table and my dad would say, what did you fail at this week? if i didn't have something to tell him, he would be disappointed. if we weren't failing enough in the home, we weren't trying new things. >> and the take away from that interview is if you have an idea for a product, doesn't have to be the most original, no one's ever thought of type idea, it can be the most simple idea. you know, she found something that every woman in america
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would have a need for and she went about it and i'm going to tell you this, christine. the product launched in the big department stores and go to the department stores, stand by the checkout lines and tell people why to buy the product. how many would do that? maybe a lot. >> she had a good idea and also had the sales acumen and selling fax machines door to door. thanks for bringing that to us. >> les gold is back. we posted a fresh video on the blog with more of my adventure with the star of "hard core pawn." i got a lesson in negotiating. >> they're silkscreened by a friend in brooklyn. all american made. $20. >> wow. $20. how much would you take for three? >> 60. >> no deal? >> no deal. >> even with cash. >> no deals on the t-shirts. >> we bought them. i have them in my hand and we
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did not pay $60 for those. to see how les got him to go and learn how to do it yourself, go to our blog at cnn.com/yourmoney. "cnn newsroom" starts right now. great to have you with us on this sunday. it is 4:00 p.m. in the east. i'm pamela brown in for fredericka whitfield. these stories are topping this hour. swift water rescues save live in north carolina. not everyone is able to escape. we have an update on the victims. fears realized in new york. the body of a man involved a deadly wedding party boating accident is found. we'll bring you the latest developments. and a remarkable scene in brazil. millions of people crowd the beach. all of them there to celebrate mass with the pope. in new york, this afternoon,

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